Sales Commission Calculator

Commission = Sale Amount × Commission Rate. For example, a $10,000 sale at 5% commission = $500. If there's a draw or base salary offset, subtract that from the commission earned: Net Payout = Commission − Base Offset. This calculator handles both in one step.

Rates vary by industry and role: real estate agents 2–6% of sale price; SaaS AEs 5–15% of ACV; retail associates 1–5%; insurance agents 5–15%; car sales 20–25% of gross profit (not sale price). Most B2B roles combine a base salary (50–70% of on-target earnings) with commission on top.

Commission is calculated as a percentage of each sale and paid when the sale closes — it scales directly with performance. A bonus is a fixed or discretionary amount paid when targets are hit, not tied to individual sale values. Commissions are variable; bonuses may be fixed or semi-fixed.

Paying on net revenue (after discounts, returns, and fees) more accurately reflects profitability but adds tracking complexity. Gross revenue commission is simpler and more motivating for reps. Best practice: define clearly in your commission plan which figure is used, especially if your products have variable margins.

A draw (or advance) is a guaranteed minimum payment that is deducted from future commissions earned. Recoverable draws must be paid back if earned commissions fall short — so if you draw $2,000 and earn $1,500 in commission, you owe $500. Non-recoverable draws are guaranteed regardless of commission earned and are essentially a higher base salary.

Multiply the sale amount by 0.10. A $5,000 sale at 10% = $500 commission. A $25,000 sale at 10% = $2,500. This calculator lets you enter any rate and sale amount and instantly shows the payout — no math required.

Common structures: (1) Flat rate — same percentage on all sales, simple to understand. (2) Tiered — higher rate above quota (e.g., 5% up to $10K, 8% above). (3) Accelerator — rate multiplier at 100%+ quota attainment. (4) Gross margin based — commission on the profit, not the sale price, aligning reps with profitability goals.

Commission is taxed as ordinary income, same as salary. Employers withhold federal income tax, Social Security (6.2%), and Medicare (1.45%) from commission checks. The IRS allows two withholding methods: aggregate (adds commission to regular wages) or flat 22% supplemental rate. Self-employed commission earners pay both halves of FICA (15.3%) as self-employment tax.